Title
Resolution to Approv
e a Tax
Exemption for
the Ann Arbor Housing Development Corporation's Affordabl
e Housing Proj
ect at
121 E Catherine and Paym
ent
of a S
ervic
e Charg
e in Li
eu of Tax
es M
emorandum
The Ann Arbor Housing Commission (AAHC), through its 501(c)(3),
the Ann Arbor Housing Development Corporation (AAHDC), is d
eveloping
the City-own
ed parc
el at
121 E. Catherine as affordabl
e housing.
The AAHC s
elect
ed Avalon
Housing as a co-d
evelop
er, and on-sit
e t
enant s
ervic
es provid
er.
The proj
ect includ
es a ~64,000 squar
e foot L-shap
ed, 6-s
tory mix
ed-us
e building that includ
es approximat
ely 62 1-b
edroom apartm
ents and 1 2-b
edroom apartm
ent with t
enant community spac
e, staff
offic
es, and shar
ed laundry. All
the r
esid
ential units will b
e affordabl
e to hous
eholds with incom
es at or b
elow 60%
of Ar
ea M
edian Incom
e (AMI). Half
of the apartm
ents (32) will b
e targ
eted as supportiv
e housing for hous
eholds with incom
es at or b
elow 50% AMI.
The primary sourc
e of funding for affordabl
e housing development is
the Low-Incom
e Housing Tax Cr
edit (LIHTC) Program.
The Int
ernal R
evenu
e S
ervic
e (IRS) r
equir
es the AAHDC
to form a limit
ed partn
ership or limit
ed liability company with an
equity inv
estor
to financ
e the development of thes
e prop
erti
es with LIHTC.
The AAHDC has r
equ
est
ed that City Council approv
e the transfer of ownership of this prop
erty
to the AAHDC und
er a s
eparat
e resolution.
The AAHDC will own
the land and
the AAHDC will
execut
e a long-t
erm ground l
eas
e with
the limit
ed partn
ership or limit
ed liability company for
the improv
ements (buildings).
The AAHDC or an affiliat
ed entity is applying for LIHTC from
the Michigan Stat
e Housing Development Authority (MSHDA).
The prop
erty is curr
ently tax-
exempt as a publicly-own
ed prop
erty.
The City's Tax
Exemption for
Housing Proj
ects' ordinanc
e (Chapt
er 19, S
ection 1:651
of Ann Arbor City Cod
e) appli
es to all affordabl
e housing proj
ects that m
eet
the r
equir
ements
of the ordinanc
e. MSHDA r
equir
es the adoption
of a s
eparat...
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